Cisco Catches Fire

Asked if most of Cisco's growth was coming mostly from developing markets, Chambers said to the contrary, it was spread evenly.

"The balance was amazingly good everywhere," Chambers said. "All elements of our vision have evolved the way we thought. We are hitting on all cylinders, in all product categories, across all geographies."

Cash flow rose to $2.3 billion in the first quarter from $1.4 billion a year earlier. The company bought back 66 million shares at an average of $22.85 each during the quarter. The $1.5 billion buyback outlay puts Cisco's cash hoard at $19.5 billion, up from $17.8 billion at the end of the fourth quarter.

The news comes as Cisco shareholders have enjoyed a run-up the likes of which they haven't seen since the late days of the telecom-equipment bubble back in 2000.

Investors have sent Cisco up 50% since August, when Chambers raised sales guidance. Shares have hit 52-week highs each day this week, breaking through $25 Wednesday for the first time in two years.

Wednesday's postclose run-up was reminiscent of the scene back on Aug. 8, when Chambers set off a furious rally by boosting Cisco's sales guidance for this quarter. Shares rose modestly at first and then surged more than 10%.

Shares rose $2.11 early Thursday to $27.21.

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